According to the quantity theory of money, the inflation rate equals
A) real output minus the money supply.
B) the growth rate of the money supply minus the growth rate of real output.
C) the growth rate of real output minus the growth rate of the money supply.
D) the money supply minus real output.
B
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Wealth is the same as:
A. assets. B. capital gains. C. net worth. D. savings.
In the illustration above, which figure shows an aggregate production function?
A) Figure A B) Figure B C) Figure C D) Figure D
Direct finance involves the sale to ________ of marketable securities such as stocks and bonds
A) households B) insurance companies C) pension funds D) financial intermediaries
Suppose the real money demand function is Md/P = 2400 + 0.2Y - 10,000 (r + ?e). Assume M = 4000, P = 2.0, ?e = .03, and Y = 5000. The real interest rate that clears the asset market is
A) 3%. B) 6%. C) 11%. D) 14%.